Cl&p Revises Rate-hike Proposal, Decreasing Impact On Consumer Bills

February 17, 1993|By SUSAN E. KINSMAN; Courant Staff Writer

Connecticut Light & Power Co. filed new information with utility regulators Tuesday that would reduce its proposed three-year rate increase from $411 million to $372 million and lessen the impact on customer bills.

Under the revised plan, annual revenues raised from electric rates would increase by $152 million, or 7.3 percent, on May 1; by $141 million, or 6.3 percent, on May 1, 1994; and by $80 million, or 3.2 percent, on May 1, 1995.

But the increases in customer bills would be somewhat lower, because of adjustments to separate charges on monthly bills. Of the $372 million in new revenue, about $343 million would come from increases in residential and commercial customer bills.

The compounded increase in customer bills would be 16.2 percent over three years, with average annual increases of 6.2 percent in May, 4.6 percent in May 1994 and 4.6 percent in May 1995.

As yet, the practical impact on the various classes of commercial and residential customers has not been calculated, said Emmanuel S. Forde, spokesman for Northeast Utilities, CL&P's parent company.

The changes stemmed from revised budget and forecast numbers developed by the company since it filed its original application in December. And they were based on recalculations the company made after regulators balked at the phase-in approach outlined in the original application.

At first the company proposed to increase rates in March of this year, followed by more increases in January 1994 and 1995. The regulators said they would consider a multi-year plan that took effect in May, with more increases in May 1994 and 1995.

The original plan called for a compounded increase of 17.4 percent in customer bills over three years, with annual increases of 6.2 percent, 5.2 percent and 5.1 percent.

The information was submitted to the state Department of Public Utility Control the same day the regulatory agency began formal hearings on the controversial case. A final decision is expected in May.

But another decision by regulators today could whittle down the three-year plan. The city of Hartford has asked that it be dismissed because state law does not give regulators the authority to consider multi-year rate increases.

The city is represented by Peter G. Boucher, a lawyer with the Hartford firm of Halloran & Sage, and the former chairman of the utility commission.

CL&P's alternative plan would be to increase annual revenue and customer bills by $250 million, or 12.5 percent, in May. The company would likely seek another rate increase next year.

A "traditional" or single-year increase would not be in the best interest of the company or its customers, who are struggling in the state's depressed economy, said William B. Ellis, chairman and chief executive officer of Northeast Utilities, CL&P's parent company